At the end of the year, a company makes a joumal entry to accrue the interest expense on a short-term note payable. As a result of this transaction: current liabilities decrease and stockholders equity (net income) decreases. there is no effect on the accounting equation until the interest is paid. current liabilities increase and stockholders' equity (net income) decreases. current liabilities increase and stockholders' equity (net income) increases. current liabilities increase and current assets increase